What You Need to Know about Buying in a Sellers Market (and it’s not all that scary).
With all the recent market frenzy, you might be feeling anxious about buying in a Seller’s Market. You don’t need to give up the dream. It is possible to win at this without overextending yourself. When in multiples, we want to make sure we’re still keeping you within market value or at least within a range that we think will be sustainable (on many levels).
Here are some of our thoughts on buying in a sellers market.
Know your numbers: Your comfort level shouldn’t just be based on the number you’ve been approved for. What it really comes down to is what you can afford while still being able to enjoy a certain quality of life.
So what’s your “no regret” number? (we want you to sleep at night not feeling like you overpaid but also not wishing you’d bid more) If you know you’ve done your best then you will have no regrets whether you win or lose in multiples. While you need to know your personal numbers, we’re here to help with the market numbers and in any offer situation, we will go through this with you in detail so you can feel confident about your offer.
Price is not always paramount. Sellers want a firm deal, so removing home inspection and financing clauses are helpful. The deal isn’t firm until a deposit cheque is received, so having the deposit ready to go at time of offer can also be extremely attractive. Finally, sellers usually have a closing date in mind that works for them. If you can do your best to match their dream date, then you may hit upon something that will give them huge peace of mind. You might not be able to hit all of these buttons, but if you can make your offer stand out in other ways, you may just win in competition, even if your offer is lower.
Does a personal letter to the homeowner work? Sometimes yes. If you’re completely far apart from all the offers, this may not matter- but if your offer is at the closest top 2 or 3 in competition, a short & sweet, personal email introducing your family and talking about your plans for the home and the memories you hope to cherish there just might be what wins you the bid!
Markets are changing constantly. Let us guide you through the process. Send us a note anytime at firstname.lastname@example.org . We’re here to help!